2014 Vermont Statutes
Title 14 - Decedents' Estates and Fiduciary Relations
Chapter 115 - VERMONT UNIFORM GIFTS TO MINORS ACT
§ 3204 Duties and powers of custodian

§ 3204. Duties and powers of custodian

(a) The custodian shall collect, hold, manage, invest and reinvest the custodial property.

(b) The custodian shall pay over to the minor for expenditure by him or her , or expend for the minor's benefit, so much of or all the custodial property as the custodian deems advisable for the support, maintenance, education and benefit of the minor in the manner, at the time or times, and to the extent that the custodian in his or her discretion deems suitable and proper, with or without court order, with or without regard to the duty of himself or herself or of any other person to support the minor or his or her ability to do so, and with or without regard to any other income or property of the minor which may be applicable or available for any such purpose.

(c) The court, on the petition of a parent or guardian of the minor or of the minor, if he or she has attained the age of 14 years, may order the custodian to pay over to the minor for expenditure by him or her or to expend so much of or all the custodial property as is necessary for the minor's support, maintenance or education.

(d) To the extent that the custodial property is not so expended, the custodian shall deliver or pay it over to the minor on his or her attaining his or her majority or, if the minor dies before attaining his or her majority, he or she shall thereupon deliver or pay it over to the estate of the minor.

(e) The custodian, notwithstanding statutes restricting investments by fiduciaries, shall invest and reinvest the custodial property as would a prudent person of discretion and intelligence who is seeking a reasonable income and the preservation of his or her capital, except that he or she may, in his or her discretion and without liability to the minor or his or her estate, retain a security given to the minor in a manner prescribed in this chapter.

(f) The custodian may sell, exchange, convert or otherwise dispose of custodial property in the manner, at the time or times, for the price or prices and upon the terms he or she deems advisable. He or she may vote in person or by general or limited proxy a security which is custodial property. He or she may consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution or liquidation of an issuer, a security which is custodial property, and to the sale, lease, pledge or mortgage of any property by or to such an issuer, and to any other action by such an issuer. He or she may execute and deliver any and all instruments in writing which he or she deems advisable to carry out any of his or her powers as custodian.

(g) The custodian shall register each security which is custodial property and  in registered form in the name of the custodian, followed, in substance, by the words: "as custodian for  ...............................................................................................................................

(name of minor)

under the Vermont Uniform Gifts to Minors Act." The custodian shall hold all money which is custodial property in an account with a broker or in a bank in the name of the custodian, followed, in substance, by the words: "as custodian  for  …………………………………………………….…………………..........

(name of minor)

under the Vermont Uniform Gifts to Minors Act." The custodian shall keep all other custodial property separate and distinct from his or her own property in  a manner to identify it clearly as custodial property.  

(h) The custodian shall keep records of all transactions with respect to the custodial property and make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor, if he or she has attained the age of 14 years.

(i) A custodian has and holds as powers in trust, with respect to the custodial property, in addition to the rights and powers provided in this chapter, all the rights and powers which a guardian has with respect to property not held as custodial property.

(j) If the subject of the gift is a life insurance policy or annuity contract, the custodian:

(1) In his or her capacity as custodian, has all the incidents of ownership in the policy or contract to the same extent as if he or she were the owner, except that the designated beneficiary of any policy or contract on the life of the minor shall be the minor's estate and the designated beneficiary of any policy or contract on the life of a person other than the minor shall be the custodian as custodian for the minor for whom he or she is acting; and

(2) May pay premiums on the policy or contract out of the custodial property. (Amended 1971, No. 90, § 6; 1973, No. 133 (Adj. Sess.), § 6.)